The present invention relates to a continuous granulating and drying apparatus for pharmaceutical products, comprising a granulator and a fluid bed dryer, the granulator comprising a longitudinal granulation chamber having a first end with an inlet for powder material and a binder feed port and a second end with an outlet for granulated product, the granulation chamber comprising at least one rotary shaft provided with at least one granulating element, the fluid bed dryer comprising at least two separate processing compartments forming part of a common vessel being provided with radially extending partition walls separating the processing compartments from each other, each processing compartment having a product inlet and a product outlet, the fluid bed dryer comprising a bed plate having openings for fluidizing gas and being arranged above a gas inlet, a gas outlet, a granulated product supply conduit arranged rotatably to selectively communicate with the product inlet of each separate processing compartment, respectively, a product discharge conduit arranged rotatably to selectively communicate with the product outlet of each separate processing compartment, respectively.